How to Zig

Author

Steve O'Dell
March 13, 2024

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Now, back to the newsletter. Today's topic is "How to Zig," which comes from the classic expression zig when others zag. 

What does this mean? 

Simply put, it means you do the opposite of conventional wisdom or what the crowd does. 

The consumer world has a developed playbook for success. This is usually the first stop for many first-time founders. They look to the people who have done it before, ask them what they did, and set out to emulate those tactics (and results). 

Often, however, what has once worked only works sometimes. The tactic has dried up, or folks have wisened up. 

If this is the cause, it's time to learn to zig. 

One hell of a Zig

Conventional wisdom in CPG says that you must have a booth at Expo West to grow your brand. After all, this has helped many brands grow their retail doors, which put them on a path to a successful exit. 

And after all, everyone is doing it! 

Here's the counterpoint. One of my friends founded Liquid IV, which had one of the most significant exits in the industry a few years ago. The founder always told me, "Go to the expo, but never exhibit." I vividly remember him sitting in the lobby of the Hilton, taking meetings all day, and I asked him, "Why did you tell me to come but never exhibit?"

He responded, "It's much more time-efficient and cost-effective to come, take the meetings you can get, and save on the booth."

For the uninitiated, designing a booth, flying your team out, and paying for the show can easily cost $20k+. You can do it cheaper or more expensive, but you get the point. 

For most small brands, selling three units per store per week at a 40% gross margin will take a very long time to pay back the show's costs (if ever). 

On the contrary, a flight and hotel room are sub $1k, and you can still get the meetings you'd want. You lose the serendipitous buyer meetings but still get the targeted meetings you know will move the needle. Not everyone should be in Walmart anyway, so who cares if you don't bump into that buyer.

What are the dangers of zigging?

I'm sure that by this point, you are shaking your head in agreement (you are, right?!?), but be warned. 

Zigging can easily lead to company death. Here's a lame example. Many people in CPG will tell you that cash is king, you must always have cash. If you try to zig this one, you will obviously kill your company. Never zig on finances, legal or operations. There is almost always no need to innovate here.

Silly example aside, the lesson is that it's important you do not try to go against the grain is too risky of ways. Most of the playbook is actually correct. To zig correctly, you must not only be contrarian. You must be contrarian and right.

Anyway, I hope you enjoyed this write-up. If you have any questions, comments or feedback just respond here!

Have a great week, and for those exhibiting at Expo, I hope you pay back your show costs very quickly! 😅 

Cheers,

Fonder of Tenzo & Commerce Chronicles

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